More Tax Tips and Often Overlooked Deductions from Donahue & Associates

Tax time is again upon us! Hopefully you have filed your prior year returns and are planning for the this year in the face of changes and new deduction opportunities. Let's look at some often overlooked deductions and tax savings ideas:

Overlooked Deductions

Depreciation of home computer used for business/investment activities.
Mileage allowance for charitable use of auto; related expenditures.
Mortgage penalties/late-payment fees. PMI payments. (Rental Property)
Mortgage points on initial loans, sometimes on refinancing.
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It's too late to change last year! However, this year has just begun and there are opportunities to save on taxes. While changes in the law have created some new saving possibilities, many have always been available. Here are some tax saving ideas...

Tax Saving Ideas

Consider the gift (under Uniform Gift for Minors) of appreciated stock to a child before sale. Monies received from sale could provide for education. (special rules apply for children under 18 years old).
Replace non-deductible personal (credit cards) debt with equity line secured by real estate.
Keep in mind the Federal and State tax cost of gains when making investment decision. Federal: Short term gains up to 35%, long term gains generally 15%.
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The above list is far from all-inclusive and is not a full treatise. A tax professional should be contacted to determine if your specific circumstances permit these deductions. Please contact us for assistance in identifying and implementing the best strategies for you.

We invite you to also check out our tax tips for business owners.